MIRAMAR MINING CORPORATION has announced that its wholly owned subsidiary, Miramar Con Mine has entered into an agreement to sell its Bluefish hydroelectric power plant to the Northwest Territories Power Corporation (NPC) of Canada.
Bluefish is a 7MW hydro power generating facility, located 40.2km northwest of Yellowknife, which supplies power for use by the Con Mine. Under the terms of the agreement, NPC will assume ownership of Bluefish upon closing of the transaction anticipated to occur on or before December 31, 2002. NPC will continue to supply power equal to the historic generation profile of the Bluefish facility to the Con Mine, free of charge, from the date it takes ownership until December 31, 2004.
On December 31, 2004, NPC will make a cash payment of US$6.3M to Miramar Con Mine. In addition, NPC will provide, free of charge, 5M kW and 1500KVA of demand per annum to the Con Mine for the period 2005 through 2009, during which time Miramar expects to be conducting reclamation activities at the Con Mine.